sunteck realty ltd. · sunteck realty ltd. earnings update q2 fy2018 november 13, 2017 ... 1.9%...

Sunteck Realty Ltd.Earnings Update Q2 FY2018

November 13, 2017

NSE: SUNTECK | BSE: 512179 | Bloomberg:

SRIN: IN | Reuters: SUNT.NS / SUNT.BO

DisclaimerBy attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be boundby the following limitations. This Presentation has been prepared on the basis of the estimates of the management of Sunteck Realty Limited (the "Company“ or “Sunteck”), for the soleand exclusive purpose of providing information to the Recipient about the Company and its business, and is not and should be construed to be, directly or indirectly, an offer and / or aninvitation and / or a recommendation and / or a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction, nor shall part, or all, of this Presentation form thebasis of, or be relied on in connection with, any contract or binding commitment or investment decision in relation to any securities of the Company. No offering of securities of theCompany will be made except by means of an offering document containing detailed information about the Company. Securities may not be offered or sold in the United States unlessthey are registered or exempt from registration requirements under the U.S. Securities Act of 1933, as amended. There will be no offer of securities in the United States.

The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about andobserve any such restrictions. This Presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium orin any form for any purpose without the prior written consent of the Company. The information in this Presentation is being provided by the Company solely for the purposes set outherein and is subject to change without notice. Further, this Presentation does not purport to be all-inclusive or necessarily include all the information that the Recipient desires in itsevaluation of the Company. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

The audited consolidated financial statements for Fiscals 2017 and 2016 have been prepared in accordance with Ind AS and the same for prior years have been prepared in accordancewith Indian GAAP. This Presentation contains statements which may pertain to future events and expectations and therefore may constitute forward-looking statements. Any statementin this Presentation that is not a statement of historical fact shall be deemed to be a forward-looking statement, and the Recipient agrees that such statements may entail known andunknown risks, uncertainties and other factors which may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any futureresults, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact occur. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promisesnor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have beenprepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The Company assumes no obligations to update the forward-looking statementscontained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

The Recipient acknowledges that it shall be solely responsible for its own assessment of the market and the market position of the Company and that it shall conduct its own analysis andbe solely responsible for forming its own view of the potential future performance of the business of the Company. The information contained in this Presentation is as of September 30,2017 except as may be stated otherwise. Neither the delivery of this Presentation nor any further discussions of the Company with any of the Recipients shall, under any circumstances,create any implication that there has been no change in the affairs of the Company since that date. The Company is not under any obligation to update the contents of this Presentationor inform Recipient of any changes in the affairs of the Company. The Company hereby expressly disclaims liability for any errors, inaccuracies, or omissions, and representations andwarranties – express or implied, as provided within or in connection with this Presentation. Any clarifications, queries or future communication regarding the matters stated in thisPresentation should be addressed to the Company directly. The information given in this Presentation in the form of pictures, artistic renders, areas, consideration, project details etc.should not be construed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer or invitation to acquire.The intention of this Presentation is not tosell or market the unit/s of any of the projects of the Company and is limited to only providing information to Recipient of the Presentation.

Note The project elevations are for representation purposes only and are the sole property of the Company and may not be reproduced, copied, projected, edited in any way withoutwritten permission from the Company.

Background

• Premium Mumbai focused developer with strong differentiated segment branding

that allows leadership positioning in every micro-market.

• Proven farsightedness and establish presence ahead of the curve.

• Landmark projects that change the profile of the entire locale.

• Execution excellence: ~Rs57bn worth of projects delivered.

• Balance sheet strength: Low leverage Discipline across various financial

parameters. Asset light model via JVs & JDAs.

• Strong partnerships with leading institutions.

Premium positioning through differentiated Brands

Uber luxury residences aimed at ultra HNIs

Super Premium residences in select suburban micro markets

Large formats and mixed use developments Commercial developments

Differentiated branding across product segments helps command a premium positioning across segments

A fifth brand for Aspirational Mid-income Value Homes

Coming soon

Q2 FY2018 Earnings Update

Q2 FY2018 Key Developments

1. Won two awards at Realty Plus Excellence Awards -2017 :-

• “Ultra Luxury project of the year” for Signature Island

• “Innovative Marketing Campaign of the year” for Sunteck City's campaign Offer of De

Century.

2. On the P&L front, the revenue from our ongoing projects Sunteck City Avenue 1 and Avenue 2

at Goregaon (W), ODC, is recognized for the first time, leading to topline growth both on a YoY

and QoQ basis.

3. On the operational front, we launched fresh inventory of our projects Sunteck City Avenue 1

and Avenue 2 at Goregaon (W), ODC through a campaign called “Offer of De Century” which

received an overwhelming response.

4. Additionally, the company raised fresh capital recently which places us in a position of further

strength, enabling us to increase the pace of execution at our ongoing and forthcoming

projects, and scale-up our business while maintaining attractive ROEs.

Sunteck Realty wins 2 awards atRealty Plus Excellence awards 2017

Sequential growth in a tough macro environmentRs million

P&L (consolidated) - Rs million Q2 FY18* Q1 FY18 % change qoq Q2 FY17

Revenue from Operations 3,467 1,334 160% 2,061

EBITDA 993 707 40% 1,264

Operating Margin 29% 53% - 61%

Profit after tax 621 352 77% 961

Net Profit Margin 18% 26% - 47%

Operational Data - Rs million Q2 FY18 Q1 FY18 % change qoq Q2 FY17

Pre-sales (new bookings) 1,698 1,278 33% 2,688

Collections 1,455 1,305 11% 1,984

Rs million

* Q2FY18 includes first time recognition of legacy sales at Sunteck City Avenue 1 & Avenue 2 projects.

Low leverage in a debt heavy sector

• Promoter shareholding of ~66% with no promoter shares pledged, no Corporate Guarantee

given.

• Credit Rating of A+ from FITCH & CARE.

• Average cost of secured debt ~10.4% - one of the lowest in the sector. Incremental debt

funding @ 9.25% - 9.75%.

5

Rs millionH1 FY18

(adjusted for QIP)H1 FY18 FY17

Secured Debt 8,545 8,545 7,770

Cash & Bank Balance* 5,731 731 986

Net Secured Debt 2,814 7,814 6,784

Unsecured Debt 1,983 1,983 1,669

Net Debt 4,797 9,797 8,453

Net Worth* 23,575 18,575 17,953

Net Debt / Equity 0.20 0.53 0.47

* includes Rs5bn of QIP proceeds

Sunteck Share Price Performance FY2018 - YTD

0.5

1.0

1.5

2.0

2.5M

ar-1

7

Ap

r-1

7

Ap

r-1

7

May

-17

May

-17

Jun

-17

Jun

-17

Jul-

17

Jul-

17

Au

g-1

7

Au

g-1

7

Sep

-17

Sep

-17

Sep

-17

Oct

-17

Oct

-17

No

v-1

7

Share price performance (Indexed to 1)

Sunteck BSE Realty Index Sensex

Shareholding Pattern – 31st October 2017

Promoter & Promoter Group,

65.7%Pabrai Investments Fund, 8.6%

L&T MF, 3.5%

FIL Investment (Fidelity), 2.3%

FIAM Group Trust (Fidelity), 1.9%

Oxbow, 1.2%

Others, 8.2%

Non -institutional

investors, 8.7%Institutional investors

25.6%

Project Updates

Signature Island, BKC

COMPLETED PROJECTS UNDER CONSTRUCTION PROJECTS UPCOMING PROJECTS

LIFT LOBBY

DRIVE WAY LOBBY


PODIUM GARDEN

Signature Island, BKC

MULTI-PURPOSE HALL

SWIMMING POOL

ATRIUM


SHOW FLAT - BEDROOM

SHOW FLAT – LIVING ROOM

Signia Isles, BKC

AMPITHEATRE

AMENITY AREA

SWIMMING POOL


Signia Oceans, Airoli

Mar’ 15

DRIVEWAYLOBBY

ENTRANCE


SWIMMING POOL

Signia Skys, Nagpur

SUNTECK CENTRE, VILE PARLE SUNTECK GRANDEUR, ANDHERI


Commercial Projects

SUNTECK KANAKA CORPORATE PARK, GOA


Commercial Projects (Cont’d..)


Final stage of RCC and Finishing WIP

Signia Pearl, BKC

Indicative Artistic Impression


Sunteck City, 1st Avenue

Tower C: 4th slab completedTower A & B : 36th Slab Completed



Sunteck City, 2nd Avenue

Tower B: Foundation completed Tower A –7th Slab Completed


Indicative Artistic

Impression

Signia High, Borivali

Terrace slab completed

Show apartment ready

Super Structure

Completed



Actual view from site

8th slab completed

Signia Waterfront, Airoli

8th Slab Completed



Signia Pride, Andheri

6th slab complete

Corporate Office

5th Floor, Sunteck Centre,

37-40 Subhash Road,

Vile Parle (East), Mumbai – 400057

Tel: +91-22-42877800

Email: [email protected]

Thank You!

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sunteck realty ltd. · sunteck realty ltd. earnings update q2 fy2018 november 13, 2017 ... 1.9%...

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